CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2011

Transcription

1 CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2011

2 CONSOLIDATED FINANCIAL STATEMENTS YEAR ENDED DECEMBER 31, 2011 CONTENTS Page Independent Auditors' Report... 1 Consolidated Statement of Financial Position... 2 Consolidated Statement of Activities... 3 Consolidated Statement of Functional Expenses... 4 Consolidated Statement of Cash Flows... 5 Notes to Consolidated Financial Statements... 6

3 10990 Wilshire Boulevard T 16 th Floor F Los Angeles, CA INDEPENDENT AUDITORS REPORT To the Board of Directors The Entertainment Industry Foundation We have audited the accompanying consolidated statement of financial position of The Entertainment Industry Foundation (the Foundation), a nonprofit organization, as of and the related consolidated statements of activities, functional expenses, and cash flows for the year then ended. These consolidated financial statements are the responsibility of the Foundation s management. Our responsibility is to express an opinion on these consolidated financial statements based on our audit. The prior year summarized comparative information has been derived from the Foundation s 2010 consolidated financial statements, and in our report dated September 27, 2011, we expressed an unqualified opinion on those consolidated financial statements. We conducted our audit in accordance with auditing standards generally accepted in the United States of America. Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the consolidated financial statements are free of material misstatement. An audit includes examining, on a test basis, evidence supporting the amounts and disclosures in the consolidated financial statements. An audit also includes assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall consolidated financial statement presentation. We believe that our audit provides a reasonable basis for our opinion. In our opinion, the consolidated financial statements referred to above present fairly, in all material respects, the financial position of the Foundation as of and the changes in its net assets and its cash flows for the year then ended in conformity with accounting principles generally accepted in the United States of America. April 20, 2012 Los Angeles, California Green Hasson & Janks LLP An independent member of HLB International, a worldwide network of accounting firms and business advisors.

4 CONSOLIDATED STATEMENT OF FINANCIAL POSITION With Summarized Totals at December 31, 2010 ASSETS Cash and Cash Equivalents $ 29,868,718 $ 30,429,943 Investments 4,898,319 4,887,898 Accounts Receivable 171, ,170 Contributions Receivable (Net) 17,538,441 30,204,654 Prepaid Expenses and Other Assets 582, ,940 Property and Equipment (Net) 116, ,046 TOTAL ASSETS $ 53,176,013 $ 66,820,651 LIABILITIES AND NET ASSETS LIABILITIES: Accounts Payable and Accrued Liabilities $ 1,237,319 $ 1,698,414 Grants to Charities 19,334,705 13,956,752 TOTAL LIABILITIES 20,572,024 15,655,166 NET ASSETS: Unrestricted 9,433,294 (2,003,584) Temporarily Restricted 23,143,195 53,141,569 Permanently Restricted 27,500 27,500 TOTAL NET ASSETS 32,603,989 51,165,485 TOTAL LIABILITIES AND NET ASSETS $ 53,176,013 $ 66,820,651 The Accompanying Notes are an Integral Part of These Consolidated Financial Statements -2-

5 CONSOLIDATED STATEMENT OF ACTIVITIES Year Ended With Summarized Totals for the Year Ended December 31, Temporarily Permanently 2010 Unrestricted Restricted Restricted Total Total REVENUE AND OTHER SUPPORT: Special Events Revenue $ 8,626,423 $ - $ - $ 8,626,423 $ 10,881,279 Less: Costs of Donor Benefits (4,168,632) - - (4,168,632) (4,189,168) NET REVENUE FROM SPECIAL EVENTS 4,457, ,457,791 6,692,111 CONTRIBUTIONS: Public Awareness and Education 24,185, ,185,239 62,353,038 Corporate and Foundation Contributions 13,287, ,287,814 1,567,051 Direct Contributions 9,426,685 1,346,658-10,773,343 10,969,722 Stand Up to Cancer 10,540, ,540,852 38,457,811 Veteran's Initiative 1,557, ,557,145 - Women's Cancer Programs 261, ,448 2,226,967 Worksite Campaigns 254, , ,549 National Colorectal Cancer Research Alliance 78,523 22, , ,943 ipartcipate 10, ,392 9,117 Haiti Initiatives ,725,292 TOTAL CONTRIBUTIONS 59,603,702 1,369,618-60,973, ,771,490 Investment Income Gain (Net) 95, , ,992 Net Assets Released from Program Restrictions 31,367,992 (31,367,992) TOTAL REVENUE AND OTHER SUPPORT 95,525,391 (29,998,374) - 65,527, ,869,593 EXPENSES: Program Services: Grants Program 44,758, ,758,728 96,719,841 Public Awareness and Education 17,206, ,206,683 34,490,260 TOTAL PROGRAM SERVICES 61,965, ,965, ,210,101 Supporting Services: Management and General 6,671, ,671,196 17,174,943 Fundraising 15,451, ,451,907 38,509,646 TOTAL SUPPORTING SERVICES 22,123, ,123,103 55,684,589 TOTAL EXPENSES 84,088, ,088, ,894,690 CHANGE IN NET ASSETS 11,436,878 (29,998,374) - (18,561,496) 3,974,903 Net Assets at Beginning of Year (2,003,584) 53,141,569 27,500 51,165,485 47,190,582 NET ASSETS AT END OF YEAR $ 9,433,294 $ 23,143,195 $ 27,500 $ 32,603,989 $ 51,165,485 The Accompanying Notes are an Integral Part of These Consolidated Financial Statements -3-

6 CONSOLIDATED STATEMENT OF FUNCTIONAL EXPENSES Year Ended With Summarized Totals for the Year Ended December 31, 2010 Program Services Supporting Services Public Grants Awareness Management Total Expenses Program and Education Total and General Fundraising Total Grants to Charities $ 43,323,904 $ - $ 43,323,904 $ - $ - $ - $ 43,323,904 $ 95,448,519 Public Awareness and Education - 15,497,266 15,497, ,972 7,832,001 8,687,973 24,185,239 62,353,038 Professional Services 407, , ,050 1,197,794 5,068,648 6,266,442 7,066,492 14,939,693 Salaries and Payroll-Related Expenses 610, ,572 1,449,653 3,239, ,487 4,029,565 5,479,219 5,293,385 Advertising - 5,508 5,508 6, , , ,168 6,786 Electronic Media Production - 145, ,130 71, , , ,978 2,079,950 Travel and Meetings 103,111 69, , , , , , ,014 Office Supplies and Printing 119,951 59, ,355 95, , , ,684 1,600,605 Occupancy Cost 84, , , , , , ,114 1,124,690 Equipment Rental 7, , ,282 88,288 95, ,169 Telephone and Internet 19,140 23,506 42, ,814 42, , , ,913 Insurance ,371 30, ,951 5, , , ,227 Subscriptions and Permits 43,254 6,041 49,295 39,433 20,617 60, , ,110 Postage 3,281 3,855 7,136 27,508 30,250 57,758 64,895 87,276 Bank and Merchant Fees ,114 98, , ,674 1,033,595 Miscellaneous - 1,198 1,198 14, ,324 16, Public Relations and Publicity 31,460 4,240 35,700 74,930 6,010 80, ,640 15,177 Depreciation 5,223 6,809 12,032 37,595 9,835 47,430 59,462 53,701 Special Event Space Rental ,090 85,090 85,090 - Repairs and Maintenance , ,418 7,742 6,755 TOTAL 2011 FUNCTIONAL EXPENSES $ 44,758,728 $ 17,206,683 $ 61,965,410 $ 6,671,196 $ 15,451,907 $ 22,123,103 $ 84,088,513 TOTAL 2010 FUNCTIONAL EXPENSES $ 96,719,841 $ 34,490,260 $ 131,210,101 $ 17,174,943 $ 38,509,646 $ 55,684,589 $ 186,894,690 The Accompanying Notes are an Integral Part of These Consolidated Financial Statements -4-

7 CONSOLIDATED STATEMENT OF CASH FLOWS Year Ended With Summarized Totals for the Year Ended December 31, CASH FLOWS FROM OPERATING ACTIVITIES: Change in Net Assets $ (18,561,496) $ 3,974,903 Adjustments to Reconcile Change in Net Assets to Net Cash Provided by (Used in) Operating Activities: Depreciation 59,462 53,701 Realized and Unrealized (Gain) Loss on Investments 113,128 (179,102) Loss on Donated Stock 29,695 - (Increase) Decrease in: Accounts Receivable 336,479 (467,471) Contributions Receivable (Net) 12,666,213 6,862,266 Prepaid Expenses and Other Assets 94,500 (231,756) Increase (Decrease) in: Accounts Payable and Accrued Liabilities (461,095) (883,722) Grants to Charities 5,377,953 (5,382,636) NET CASH PROVIDED BY (USED IN) OPERATING ACTIVITIES (345,161) 3,746,183 CASH FLOWS FROM INVESTING ACTIVITIES: Purchase of Investments (1,019,602) (3,497,313) Purchase of Property and Equipment (62,820) (59,666) Proceeds from the Sale of Investments 866,358 3,196,982 NET CASH USED IN INVESTING ACTIVITIES (216,064) (359,997) NET INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS (561,225) 3,386,186 Cash and Cash Equivalents - Beginning of Year 30,429,943 27,043,757 CASH AND CASH EQUIVALENTS - END OF YEAR $ 29,868,718 $ 30,429,943 The Accompanying Notes are an Integral Part of These Consolidated Financial Statements -5-

8 NOTE 1 - ORGANIZATION Created in 1942 by Hollywood legend Samuel Goldwyn with friends Humphrey Bogart, James Cagney, and the Warner brothers, The Entertainment Industry Foundation (formerly Permanent Charities Committee) was established on the belief that the entertainment industry was in a unique position to truly help others. Their vision was to unify Hollywood's generous giving in order to maximize the amount of charitable dollars raised annually, and guarantee that worthy charities receive these contributions. Throughout its history, The Entertainment Industry Foundation (the Foundation) has focused on some of the most pressing needs of our time: from the first grants directed to wartime agencies like the United States Organizations (USO) and American Red Cross, to providing funding and creating awareness to help eradicate childhood polio. Today, the Foundation continues this tradition, funding everything from arts education programs to some of the most advanced medical research in the world. For more information, visit In 2008, in collaboration with a group of executives from film, television and philanthropy, the Foundation launched the Stand Up To Cancer Initiative (SU2C). The show was broadcast in 2008 and The next broadcast will be in The Foundation s largest to date, SU2C is designed to raise funds to accelerate ground-breaking cancer research and bring new therapies to patients sooner to save lives. SU2C utilizes the entertainment industry to build broad public support and to enhance awareness of the devastating impact cancer has in this country. SU2C s goal is to bring together the best and brightest in the cancer community encouraging collaboration instead of competition. For more information, visit In 2011, the Foundation launched its Veteran s Initiative to raise critical funds and awareness to support essential reintegration services for veterans and their loved ones. The needs of veterans returning from Iraq and Afghanistan are a first tier issue. This initiative creates a call to action for all Americans to join in support of those who have risked life and limb in service to the nation. The kick-off event took place on November 11, 2011 with the broadcast of a special Rise and Honor edition of Extreme Makeover: Home Edition highlighting military stories. For more information, visit In 2007, the Foundation launched the Women s Cancer Program Initiative (WCP). The focus of this initiative is to save lives by raising awareness about the importance of early detection of breast and reproductive cancers, to fund research for early detection methods, to support community programs that assist women at risk of or affected by cancer, as well as to consolidate the Foundation s efforts to support the fight against women s cancer that are not addressed by its other initiatives. In 2000, the National Colorectal Cancer Research Alliance (NCCRA) was launched, co-founded by Katie Couric, Lilly Tartikoff and the Foundation. The NCCRA was established to raise funds and awareness to aggressively promote the latest, cutting-edge cancer research and at the same time prevent additional, and needless, colorectal cancer deaths through preventive testing. In 2009, the Foundation mobilized the entire entertainment community around a multi-year service initiative, called iparticipate, designed to encourage more Americans to volunteer and serve in their communities. The Foundation produced a series of Public Service Announcements that focused on key areas where volunteers are most needed. The Foundation also launched a dedicated website to make it easier than ever before to search for volunteer opportunities in their local communities. For more information, visit -6-

9 NOTE 1 - ORGANIZATION (continued) In 2010, in response to the devastating earthquake in Haiti, the Foundation was approached by George Clooney and MTV Networks to lend its expertise and fiduciary support with a televised fundraising event, Hope for Haiti Now, which was broadcast on January 22, 2010 on all the major networks. As a result of these efforts $66 million in grants were awarded in NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (a) PRINCIPLES OF CONSOLIDATION The accompanying consolidated financial statements include the accounts of The Entertainment Industry Foundation and its wholly-owned subsidiary, Stand Up to Cancer Music, LLC. There were no intercompany transactions during the year ended December 31, (b) BASIS OF PRESENTATION The consolidated financial statements of the Foundation have been prepared utilizing the accrual basis of accounting. (c) ACCOUNTING To ensure observance of certain constraints and restrictions placed on the use of resources, the accounts of the Foundation are maintained in accordance with the principles of net assets accounting. This is the procedure by which resources for various purposes are classified for accounting and reporting purposes into net asset classes that are in accordance with specified activities or objectives. Accordingly, all financial transactions have been recorded and reported by net asset class as follows: Unrestricted Net Assets. These generally result from revenues generated by receiving unrestricted contributions, providing services, and receiving income from investments less expenses incurred in providing program related services, raising contributions, and performing administrative functions. Temporarily Restricted Net Assets. The Foundation reports gifts of cash and other assets as temporarily restricted support if they are received with donor stipulations that limit the use of the donated assets. When a donor restriction expires, that is, when a stipulated time restriction ends or the purpose of the restriction is accomplished, temporarily restricted net assets are reclassified to unrestricted net assets and reported in the consolidated statement of activities as net assets released from program or capital restrictions. Donor restrictions that are satisfied in the year the donations are received are reflected as unrestricted. The Foundation has $23,143,195 of temporarily restricted net assets at December 31, Permanently Restricted Net Assets. These net assets are received from donors who stipulate that resources are to be maintained permanently, but permit the Foundation to expend all of the income (or other economic benefits) derived from the donated assets. The Foundation has $27,500 of permanently restricted net assets at. -7-

10 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (d) CASH AND CASH EQUIVALENTS Cash and cash equivalents are short-term, highly liquid investments with maturities of three months or less at the time of purchase. The carrying value of cash and cash equivalents at approximates its fair value. The Foundation maintains its cash and cash equivalents in bank deposit accounts and other investment accounts, which, at times, may exceed federally insured limits. The Foundation has not experienced any losses in such accounts and believes it is not exposed to any significant credit risk on cash and cash equivalents. (e) INVESTMENTS Investments in equity and debt securities with readily determinable market values are reported at fair value. The fair value of investments is valued at the closing price on the last business day of the fiscal year. Securities are generally held in custodial investment accounts administered by financial institutions. Investment purchases and sales are accounted for on a trade-date basis. Realized gains and losses are calculated based upon the underlying cost of the securities traded. Interest and dividend income is recorded when earned. Gains or losses (including investments bought, sold, and held during the year), and interest and dividend income are reflected in the consolidated statement of activities as increases or decreases in unrestricted net assets unless their use is temporarily restricted by donor stipulations or by law. Investment securities, in general, are exposed to various risks, such as interest rate, credit, and overall market volatility. Due to the level of risk associated with certain longterm investments, it is reasonably possible that changes in the values of these investments will occur in the near term and that such changes could materially affect the amounts reported in the consolidated statement of financial position. (f) ACCOUNTS RECEIVABLE Receivables are recorded when billed or accrued and represent claims against third parties that will be settled in cash. The carrying value of receivables, net of the allowance for doubtful accounts, if any, represents the estimated net realizable value. The allowance for doubtful accounts is estimated based on historical collection trends, type of customer, the age of outstanding receivables and existing economic conditions. If events or changes in circumstances indicate that specific receivable balances may be impaired, further consideration is given to the collectability of those balances and the allowance is adjusted accordingly. Past due receivable balances are written-off when internal collection efforts have been unsuccessful in collecting the amount due. All accounts receivable are considered fully collectable within one year; therefore, no allowance for doubtful accounts has been provided for at. (g) CONTRIBUTIONS RECEIVABLE Contributions, including unconditional promises to give, are recognized as support when received at fair value. -8-

11 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (g) CONTRIBUTIONS RECEIVABLE (continued) Unconditional promises to give which are expected to be collected or paid in future years are discounted at the appropriate rate commensurate with the risks involved. Contributions received and made are recorded at present value using a discount rate of 1.78% for the year ended. Amortization of the discount on contributions received is recorded as additional contribution revenue. Amortization of the discount on contributions made to other charities is recorded as additional grants to charities expense. Conditional promises to give that are contingent upon future events or future matching are not recorded until the condition has been satisfied. If funds are received from such gifts, they are recorded as refundable advances until the condition is satisfied. When the condition has been satisfied, the gift is recognized as either unrestricted or temporarily restricted revenue depending on the intent of the donor. Special event contributions are generally reported as increases in unrestricted net assets. However, if the circumstances surrounding the receipt of such contributions make clear the respective donor s implicit restriction on use, such amounts are classified as increases in temporarily restricted net assets. (h) PROPERTY AND EQUIPMENT Property and equipment are recorded at cost if purchased or at fair value at the date of donation if donated. Depreciation is computed on the straight-line basis over the estimated useful lives of the related assets. Maintenance and repair costs are charged to expense as incurred. Property and equipment are capitalized if the cost of an asset is greater than or equal to $500 and the useful life is greater than one year. The estimated useful lives are as follows: Office Furniture and Equipment Leasehold Improvements 3-5 Years 5-10 Years (i) LONG-LIVED ASSETS The Foundation evaluates long-lived assets for impairment whenever events or changes in circumstances indicate that the carrying value of an asset may not be recoverable. An impairment loss is recognized when the sum of the undiscounted future cash flows is less than the carrying amount of the assets, in which case a write-down is recorded to reduce the related asset to its estimated fair value. No such impairment losses have been recognized during the year ended. (j) DEFERRED REVENUE Fees for events, which are paid in advance, are deferred and recognized as income in the period in which the related events are held. (k) GRANTS TO CHARITIES Unconditional grants are charged against operations when authorized by the Foundation s Board of Directors. The actual payment of the grant may not necessarily occur in the year of authorization. Cancellations of grants occur when the grantees do not meet the terms under which the grants were awarded. All grants to charities at December 31, 2011 are expected to be paid within one year. -9-

12 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (l) CONCENTRATION OF CREDIT RISK The Foundation places its temporary cash investments with high-credit, quality financial institutions. At times, such investments may be in excess of the Federal Deposit Insurance Corporation insurance limit. The Foundation has not incurred losses related to these investments. (m) CONTRIBUTED GOODS AND SERVICES Contributions of donated noncash assets are recorded at fair value in the period received. Contributions of donated services are recognized if the services received (a) create or enhance long-lived assets, or (b) require specialized skills provided by individuals possessing those skills, and would typically need to be purchased if not provided by donation. (n) ADVERTISING COSTS Advertising costs are expensed as incurred. Total advertising expense was $118,168 for the year ended. (o) INCOME TAXES The Foundation is exempt from taxation under Section 501(c)(3) of the Internal Revenue Code and Section 23701d of the California Revenue and Taxation Code. (p) FUNCTIONAL ALLOCATION OF EXPENSES The costs of providing the various programs and other activities have been presented in the consolidated statement of functional expenses. During the year, such costs are accumulated into separate groupings as either direct or indirect. Indirect costs are allocated among program and support services by a method that best measures the relative degree of benefit. The Foundation uses proportional salary dollars to allocate indirect costs. (q) USE OF ESTIMATES The preparation of consolidated financial statements in conformity with generally accepted accounting principles requires management to make estimates and assumptions that affect certain reported amounts and disclosures. Accordingly, actual results could differ from those estimates. (r) COMPARATIVE TOTALS The consolidated financial statements include certain prior-year summarized comparative information in total but not by net asset class. Such information does not include sufficient detail to constitute a presentation in conformity with accounting principles generally accepted in the United States of America. Accordingly, such information should be read in conjunction with the Foundation s consolidated financial statements for the year ended December 31, 2010 from which the summarized information was derived. -10-

13 NOTE 2 - SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (continued) (s) SUBSEQUENT EVENTS The Foundation has evaluated events and transactions occurring subsequent to the consolidated statement of financial position date of for items that should potentially be recognized or disclosed in these consolidated financial statements. The evaluation was conducted through April 20, 2012, the date these consolidated financial statements were available to be issued. No such material events or transactions were noted to have occurred. NOTE 3 - INVESTMENTS The Foundation implemented the accounting standard that defines fair value for those assets (and liabilities) that are re-measured and reported at fair value at each reporting period. This standard establishes a single authoritative definition of fair value, sets out a framework for measuring fair value based on inputs used, and requires additional disclosures about fair value measurements. This standard applies to fair value measurements already required or permitted by existing standards. In general, fair values determined by Level 1 inputs utilize quoted prices (unadjusted) in active markets for identical assets. Fair values determined by Level 2 inputs utilize data points that are observable such as quoted prices, interest rates and yield curves. Fair values determined by Level 3 inputs are unobservable data points for the asset (or liability) and include situations where there is little, if any, market activity for the asset (or liability). The following table presents information about the Foundation s assets that are measured at fair value on a recurring basis at and indicates the fair value hierarchy of the valuation techniques utilized to determine such fair value: December 31, 2011 Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) INVESTMENTS: Domestic Common and Foreign Stock $ 1,248,778 $ 1,248,778 $ - $ - Agency Debt and Loans 1,141,670 1,141, Corporate Bonds 872, , Government Bonds 434, , Municipal Bonds 388, , Foreign Bonds 386, , Mutual Funds Closed End 375, , Foreign Bonds 51,051 51, TOTAL INVESTMENTS $ 4,898,319 $ 4,898,319 $ - $ - The fair values of marketable securities within Level 1 inputs were obtained based on quoted market prices at the closing of the last business day of the fiscal year. -11-

14 NOTE 3 - INVESTMENTS (continued) Net investment gain for the year ended consists of the following: Interest and Dividends $ 273,650 Realized and Unrealized Loss (113,128) Loss on Donated Stock (29,695) Investment Fees (34,921) INVESTMENT GAIN (NET) $ 95,906 NOTE 4 - CONTRIBUTIONS RECEIVABLE Contributions receivable at are expected to be collected as follows: Less than One Year $ 6,928,976 One to Five Years - More than Five Years 12,000,000 GROSS CONTRIBUTIONS RECEIVABLE 18,928,976 Less: Present Value Discount (1,390,535) CONTRIBUTIONS RECEIVABLE (NET) $ 17,538,441 NOTE 5 - PROPERTY AND EQUIPMENT Property and equipment consist of the following at : Office Furniture and Equipment $ 395,193 Leasehold Improvements 62,333 TOTAL 457,256 Less: Accumulated Depreciation (341,122) PROPERTY AND EQUIPMENT (NET) $ 116,404 Depreciation expense for the year ended was $59,462. NOTE 6 - ACCOUNTS PAYABLE AND ACCRUED LIABILITIES Accounts payable and accrued liabilities consist of the following at : Accounts Payable $ 566,393 Accrued Vacation 257,409 Deferred Rent 193,597 Deferred Revenue 122,180 Accrued Payroll and Other Payroll Withholdings 97,740 TOTAL ACCOUNTS PAYABLE AND ACCRUED LIABILITIES $ 1,237,

15 NOTE 7 - PUBLIC AWARENESS AND EDUCATION The Foundation conducts a Public Awareness and Education program that provides information and education regarding the various initiatives adopted by the Foundation. Information and education are primarily provided by public service announcements (PSA s). The PSA s are disseminated in the form of broadcast or print advertisements. These products are donated by major television networks and magazine publications. The public service announcements were comprised of the following: Broadcast Airtime $ 13,715,448 Print Ad Publications 10,469,791 TOTAL PUBLIC AWARENESS AND EDUCATION $ 24,185,239 NOTE 8 - COMMITMENTS The Foundation leases office facilities under several operating leases, with various terms expiring through March 31, Total rental expense charged to operations under these leases during the year ended was $793,299. Lease commitments are as follows: Years Ending December $ 552, , , ,651 TOTAL $ 1,856,998 NOTE 9 - TEMPORARILY AND PERMANENTLY RESTRICTED NET ASSETS Restricted net assets at are available for the following purposes: Temporarily Restricted Net Assets: Stand Up to Cancer $ 15,510,625 Other Donor Purpose Designation 3,775,255 Women s Cancer Programs 3,141,553 National Colorectal Cancer Research Alliance 690,759 Scholarships and Academic Support 25,003 TOTAL TEMPORARILY RESTRICTED NET ASSETS $ 23,143,195 Permanently Restricted Net Assets: Scholarship Endowment $ 27,

16 NOTE 10 - ALLOCATION OF JOINT COSTS The Foundation conducted public service announcements that included requests for contributions as well as program components. The costs of conducting these activities included joint costs totaling $24,185,239 which were not specifically attributable to particular components of the activities. The joint costs were allocated as follows: Public Awareness and Education $ 15,497,266 Fundraising 7,832,001 Management & General 855,972 TOTAL JOINT COSTS $ 24,185,